The much-awaited Langat 2 water treatment plant and water reticulation system in Selangor is set to take off with the award of a close to RM1bil contract by the Government.
In a filing with Bursa Malaysia, Salcon Bhd said its joint-venture (JV) entity with MMC Corp Bhd and Ahmad Zaki Resources Bhd (AZRB) had received a letter of acceptance (LoA) from Pengurusan Aset Air Bhd for the RM993.88mil Langat 2 water treatment plant and reticulation contract.
Salcon has a 36 per cent stake in the JV, MMC 34 per cent and AZRB 30 per cent. Under the LoA, the JV will undertake package 2A, which involves the construction and completion of the 1,130-million-litre-per-day Langat 2 water-treatment plant.
The contract is for a duration of 36 months and is expected to contribute positively to the earnings of the three companies.
“The project is expected to contribute positively towards the earnings and net assets of the Salcon group for the financial years ending Dec 31, 2014, 2015, 2016 and 2017,” said Salcon.
On Wednesday, The Star had reported that a 44.6km-long tunnel, a vital part of the Pahang-Selangor Raw Water Transfer Project, was set to function sooner than expected to resolve the water crisis in Selangor.
Raw water from Sungai Semantan will be diverted into the tunnel and channelled into Sungai Langat for treatment in seven existing plants. The tunnel, which is almost completed, was originally designed to channel water directly to the Langat 2 water treatment plant and has been delayed for three years now.
The Pahang-Selangor Raw Water Transfer Scheme includes the tunnel and two water-treatment plants.
The proposed use of the tunnel reflects the urgent action the Federal Government realises is needed to ease the burden of 6.7 million consumers in Selangor, Putrajaya and Kuala Lumpur since February.
